Although the times are changing, some areas connected with acquiring new customers and selling products are still the same. We are referring to the Marketing Mix, also known as the 4 P’s – four essential elements that affect sales.
What exactly is the Marketing Mix and what is its role in e-commerce? Does this strategy work equally well in conventional and online sales? Read our article to learn more. You will definitely discover new and interesting facts.
What is the Marketing Mix and how does it affect online sales?
The concept of the Marketing Mix is based on four cornerstones: product (what we sell), price (how much we sell it for), place/distribution (how we sell it) and promotion (how we handle communication to be able to sell our product).
You can find the exact definition of the Marketing Mix in numerous books on marketing and on most blogs dedicated to the topic. That is why we will only focus in our article on the most interesting part, i.e. how the 4 P’s relate to online sales strategies.
4 P’s in e-commerce. Is the Marketing Mix different in this form?
At the beginning of our article, we mentioned that some rules would never change. Whether we talk about online or offline sales, people still buy products if their price and the way they are distributed and promoted best meet the customer’s expectations.
What distinguishes the 4 P’s in digital sales from the conventional form is the greater number of opportunities for optimising, tracking and monitoring.
- The Product ceases to be just an object that the customer can assess in a matter of seconds or minutes.
- The Price can be compared with hundreds of similar solutions in just a few seconds.
- Distribution is taken to a new level – enabling customers to shop from wherever they may be and, most importantly, have their products delivered anywhere in their country or in the world.
- Promotion, in turn, no longer refers only to annoying and ubiquitous advertisements. Instead, users receive customised communications adapted to a specific time, place and customer.
What should you do to be sure that your e-commerce business is successful and your profit keeps growing?
Product: highlight its best qualities
A product is not just an object to be bought by a customer. It is the entire experience connected with the way the product is presented and described, with the functions of the product and, most importantly, with the benefits the buyer can expect.
Consumers do not buy products because of excellent specifications, unique technology or exceptional appearance. They do so primarily to get actual benefits – to feel or look better, be safer or even achieve specific goals.
That is why suitable presentation of the product is so important in this context, both in terms of text and graphics. Do not focus on presenting the product itself. Instead, make sure that the description and pictures clearly point out the benefits waiting for the buyer.
Price: avoid overpricing and prove that the product is worth its price
The Internet is a powerful sales-building tool, but it also carries significant risks due to its limitations. If you offer popular products that are not sold exclusively by your company, you have to keep in mind that the first thing the customer will do is compare your prices to the prices of your competition.
That is why you should regularly monitor the prices, to make sure that they are not significantly different from the average prices on the market while still providing you with an adequate sales margin.
If you offer products of your own brand, you can have a bit more freedom in the way you set your prices. However, even if this is the case, you have to remember that your competition will try to catch up with you, and potential customers will certainly be looking for a less expensive alternative.
Place: make sure that the product is available, that the purchase process is easy and intuitive and that the delivery is unproblematic
The pandemic, which is a problem that has to be tackled both by the governments of many countries and by companies around the globe, has only sped up the inevitable – increased share of e-commerce in overall sales.
In order for the customers to buy the product, it simply has to be available. This means that both manufacturers and sellers have to keep suitable stock. It is also necessary to ensure that the online purchase itself (selection of products and payment and delivery methods) is simply easy.
When discussing the place where the purchase is made and the method used to buy the product, it is also necessary to point out another aspect directly connected with product availability. After all, the actual use of the product only starts when it is physically delivered to the customer. That is why, in addition to a convenient purchasing and payment system, you also have to provide a wide range of customised forms of delivery.
In order for the shipments to be quickly delivered to any place the customer requires, you might want to consider working with at least several delivery and courier companies.
Promotion: make sure the product is talked about
There is no point in offering a great product at an affordable price using a modern system if no one hears about your offer. That is why, just like the three previous P’s (product, price and place), you also have to focus on the fourth P, i.e., proven and professional promotion.
This can best be done using tools and areas adapted to the target group. Selling online allows you to select and optimise the promotions that bring the best results. You choose from banner advertising, advertising texts, e-mail marketing, SEO and many other options. The best choice might depend, for instance, on the characteristics of your industry or the current stage of development of your company.
You have a product? We can take care of the rest!
If you want your products to be available to the widest possible group of customers and priced appropriately, and you also want to know how they are being promoted – use the dedicated Dealavo tool.
We can solve your problems with:
- Place by providing you with information about the availability of the products on selected e-commerce platforms and more.
- Prices by allowing you to monitor the prices of your products at selected stores and compare them with your competition.
- Promotion by letting you know how your products are communicated and advertised.